that does it for this edition of "ac 360." thanks for watching, "early start begins right now. rejected. the gop snubs the white house's opening offer in fiscal cliff talks. upgraded palestine celebrates a new status despite stiff american opposition. rich and now famous. we know the identity of one of those lucky power ball jackpot winners. >> that's good news. >> can't wait to meet that

person. >> good morning. welcome to "early start." i'm christine romans. it's friday. >> happy friday. john berman is hosting "starting point" at 7:00. the middle east is getting ugly. insult and finger pointing in the fiscal cliff debate. tax rates spike and spending slashed. congress is breaking for the holidays in two weeks. it could send the economy spinning in directions. $1.6 trillion in tax hikes. he will travel to pennsylvania to sell it to you. republicans aren't buying it. listen to house speaker, john boehner. >> despite the claims the president supports a balanced approach, the democrats have yet to get serious about real spending cuts. >> democrats are firing right back at boehner.

harry reid getting a little personal. >> i don't understand his brain, so you should ask him. okay? >> ouch. athena jones live from washington. same old same old. where do we go from here? >> that's the big question. the nice talk after the election is pretty much gone away. you mentioned one of the big sticking points, that's taxes. republicans and democrats can't agree on how to raise the tax revenue? end the bush tax cuts for the wealthy, close the loopholes, raise the capital gains taxes or all of the above. right now, they can't agree on how much money should be raised on the revenue side. let's listen to more from harry reid about the democrats stance on this. >> we are ready to protect middle class families by freezing the tax rates for the

first $250,000 and letting the rates go to the same level they were during the clinton administration. the republicans know where we stand. we have said it so many times, the president said the same thing. >> you know, reid is right. republicans know where the democrats stand. republicans feel that there's been way too much focus on this whole tax issue and not nearly enough of an emphasis on the spending side. they want to hear about spending cuts. let's listen to house speaker john boehner again. >> right now, all eyes are on the white house. the country doesn't need a victory lap, it needs leadership. it's time for the president, congressional democrats to tell the american people what spending cuts they are willing to make. >> so you know, the republicans want to see bigger spending cuts, more spending cuts on the democratic side. this $450 billion from the white house, unspecified cuts to

medicare is just not enough. so, that's where we stand with just over a month to go before this big deadline and the holiday break is coming up. >> very concerned about that. the president is taking his pitch to pennsylvania today. what is he going to say to the american people and how does he plan to sell his approach? a lot of people want a plan to pass. >> certainly, polls show there's support for this combination of tax increases and spending cuts. the president is going to a toy manufacturer. the white house says this is the kind of company that relies on middle class companies, the kind of families that could see their taxes go up. this is part of the campaign to continue pushing for what he says both sides agree on. tax rates shouldn't go up for the middle class at least. republica republicans don't want to see them go up for anyone. he talked about the idea of

my2k. get involved, talk about what $2 means to them. it's the amount they could see their taxes go up next year. this campaigning is not sitting well with republicans as you can imagine. >> no. we know the president says he wants a deal done by christmas. we'll see whether or not it's possible. athena jones live in washington, thank you. a new chapter opened in a decades long conflict between israelis and palestinians by an overwhelming majority. they voted yesterday to elevate the status of the palestinian authority from permanent observer to non-member state. palestinians danced in the streets of the west bank. the united states and israel opposed the resolution. palestine, as an individual state, still does not exist. we are joined from washington. good morning. >> morning. >> this vote did not grant palestinians statehood. it was important to the u.s. and

israel, they are both withdrawaling aid to the west bank. 138 countries in total backed the palestinians in this. what does this status grant them? >> well, the vote is really a global endorsement of the palestinian position, a palestinian state. it certainly bolsters abbas and the palestinian authority who were weakened. it gives the palestinians hope and a bit of dignity after so many decades of occupation that a state is possible. let's listen to president abass after the vote yesterday. >> translator: we did not come here seeking to delegitimize a state established years ago. that is israel. rather, we came to aform the legitimacy of a state that must now achieve independence, that is palestine. >> as you said, christine, it

doesn't give the palestinians anything tangible. the u.s. feels this is a false sense of accomplishment. on the ground, things are going to be exactly the same. susan rice spoke to this a little bit when explaining why the u.s. voted against the measure. take a listen. >> the united states agrees, strongly, today's grand pronouncement will soon fade and the palestinian people will wake up tomorrow and find that little about their lives has changed. >> so, everyone is looking to see what president abbas does now. does he go to the table? what the u.s. is worried about is the palestinians have more tools now to challenge israel on the international stage of the international criminal court over settlement activity. it's going to further marginalize israel and lead to restrictions on the palestinians

including from u.s. congress. >> only seven other countries oppose this. could it affect our standing within the u.n. and relationships with other countries? >> well, i think it is a little bit of a bruiser for the united states at the united nations. certainly the u.s. is the primary backer of israel. this vote is really a message to the united states that it's support of israel isn't going to be tolerated at the united nations. it puts a lot of pressure on the united states to get these parties back to the table and hammer out a deal as the main mediator in the peace process. >> thank you. >> it is eight minutes past the hour. egypt's assembly passed a new rushed draft constitution. the 85-member mostly muslim brotherhood assembly passed 234 articles. the draft will be presented to

morsi and approved by the egyptian people. the language is open to interpretation and may allow conservative islamists to impose a version of law. human rights groups say it's full of holes. the proposed constitution has an anger against the expanded presidential powers. the supreme court will decide whether to tackle same-sex marriage. they will consider requests to review cases. a violation of the constitutions equal protection revisions. they only recognize marriages between a man and woman. it's also considering a challenge to prop 8, that's california's ban on same-sex marriage which voters approved in 2008. listen up. we now know the identity of one of the two power ball jackpot winners. mark hill is the owner of $294

million. he bought his ticket in missouri. he confirmed on facebook saying quote, we are truly blessed, we are lucky winners of the power ball. his son talked about the moment his dad broke the good news. >> i keep thinking i'm going to wake up and think man, i had the craziest dream. he got a phone call this morning. he was toyic sounding. he was like it was us. i'm happy for him. he worked hard in his life. he won't have to anymore. >> very happy for him? for us, dude. you are his son. this surveillance video may show a winner. people at this maryland gas station say a man walked in to check his ticket and started freaking out. they say he told them he bought the ticket in arizona. cops in columbus, ohio believe they won 1 million bucks. they bought their ticket at this gas station. once the ticket is validated, 22

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>> becks is saying bye bye as a player. david beckham will play the last game in the final against the houston dynamo. it is their third championship game appearance in four years. he plans to play next year, just not in mls. there's an intriguing possibility he may come back to the galaxy as some point as owner. >> for another look at top stories go to cnn.com/earlystart. 15 minutes past the hour. let's get up to date on the mornings top stories. fiscal cliff talks getting ugly. the president is trying to sell his plan. republicans are furious. house speaker john boehner telling reporters the president needs to get serious. former president, george

h.w. bush is in stable condition this morning in a houston hospital. he was admitted a week ago and being treated for bronchitis. he's expected to be released in the next few days. he is 88 years old. scientists report the mile thick ice sheets that cover greenland and antarctica are melting. we have lost tons of ice in the last 20 years raising the sea level by 7/16 inch. thursday night football action. falcons in atlanta. they got off to a 17-0 lead before the saints scored a single point. atlanta defense had a good night. five interceptions. falcons go on to win it. they are now 11-1 on the year. atlanta could clench the nfc

south if they lose to denver on sunday. >> all right. she's bruised, but not broken. coming up, inside lady liberty for a look at the damage left behind by sandy to see what needs to be done to get this american icon back up and running. dermatologist recommendedcer ] aveeno has an oat formula, now proven to build a moisture reserve, so skin can replenish itself. that's healthy skin for life. only from aveeno. make a wish! i wish we could lie here forever. i wish this test drive was over, so we could head back to the dealership. [ male announcer ] it's practically yours. test drive! but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a jetta. that's the power of german engineering. get $0 down, $0 due at signing, $0 deposit, and $0 first month's payment on any new volkswagen. visit vwdealer.com today. can i still ship a gift in time for christmas?

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markets finished slightly higher yesterday. they came off the day's highs after comments from house speaker john boehner. pessimistic comments. remember when stocks were up 100 points because of this? they came off the highs because of pessimism. a bankruptcy judge approved $1.75 million in bonuses for 19 hostess executives as long as they meet certain objectives. hostess is the maker of the staples like twinkies and wonder bread. they closed their doors earlier this month over reduced pay and benefits. the company is being liquidated. the managers are going to get bonuses to close up shop. is the cherished mortgage interest deduction on the table

in fiscal cliff budget negotiations? the president wants to raise new revenue, higher taxes on the rich and closing loopholes in deductions. 41 million people claimed the mortgage interest deduction on their 2010 taxes. who benefits from it most? for households earning 250,000 a year, it's $55. for families making less than 40 grand, they are getting $91 in tax savings. what will happen to america's favorite tax break? it's the big question in the fiscal cliff costs. we'll have to see how much is on the table. the ford fusion was called green car of the year. starting at $21,700, expect to get over 100 miles per gallon. the style, performance and accessible price range are reasons they like it. 100 miles per gallon.

>> i want one. i was thinking i need a new car. there you have it. thank you. she took the worst of what sandy had to offer and lady liberty is still standing. the superstorm set back her reintroduction to the masses. i went to liberty island a month ago to look at the stunning touch up job. yesterday, i went back for an exclusive look. one month after superstorm sandy's wrath, lady liberty stands tall. the beacon of light is littered with debris. bricks ripped up. a boat washed up on the shore. all the result of sandy. so she survived? >> yep. standing there proud. >> reporter: while the statue itself is intact, the ground forced closure to the park. the national park service is in the midst of a clean up effort in hopes of reopening the parks

sometime early next year. how high did the water go? before sandy hit, i visited the statue of liberty for the first time. my return yesterday, very different. as we arrived, emergency crews filing in and not tourists. one month after sandy devastated the area, there is still plenty of work to do. now that's destroyed, you would say, right? >> pretty much. >> reporter: that's got to go. one of the main docks is floating. >> it's determined by how to get people off the island. if we lose this dock, we lose one boat load. that means i have to reduce the number of people that come to visit. >> reporter: the effects of sandy aren't just structural. construction workers and ferry employees were laid off due to the extended closure of the islands. did they lose their jobs? >> no. the concessioners have laid off

their folks for the time being. our folks, we sent to other parks. >> reporter: he is the superintendent of the statue of liberty. he can't help but take his work home with him. he actually lives here. how long did you live here? >> 3 1/2 years. >> reporter: it's just you and your wife? >> yes. >> reporter: did you lose everything? >> most everything. >> reporter: the office is a stark reminder of sandy's toll. when you look around and compare it to your home and what you saw, how does it compare? >> it's not close. we are on the far corner. we sustained so much more damage. to me, to have a job that you love, to have a job that you can come to and be so excited about every day, an honor i couldn't begin to describe. >> reporter: the statue of liberty remains a symbol of home and promise of the days ahead. >> as sad as it is to see it in

the state it is, it's going to be better. >> it's such a symbol of new york. >> for america. >> it was closed for a year to refurbish, opened for one day and the storm hit. >> it was $30 million to do the republican novation. there was no damage sustained to that republican novation. lady liberty is doing fine. however, the problem is the infrastructure. they lost it because it's underground. they have no lights, water or heat. they are working on that. the good news, i was excited about the good news. in the plan to rebuild, it's going to be sustainable. they are taking their time. i asked do you think you'll be closed for another year? he said absolutely not. we are going to reopen stronger and better in less than a year. i want to take a shot of lady liberty now. it's incredible. the beacon is something a group of volunteers decided they were going to go and make sure the

beacon was hit. when sandy hit, everybody lost power. the reason everything else is dark is because of the infrastructure. usually the island has all these flood lights. you can just see lady liberty there. 12 feet of storm surge down in lower manhattan, think about what that was with lady liberty by her lonesome. >> another neat thing is that lady liberty got sandblasted. when you have an opportunity to look at her, her green is different on her belly than on the top of her. >> really? >> yeah, take a look at that. she got sandblasted and cleaned in the process. there are bright spots. the people working on this, this is their passion, this is their love. they are going to do a great job. it will be open again. >> 27 minutes after the hour. mom and pop shops all over the country hanging on washington's

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fiscal split. the two sides seem farther than ever apart after round one of talks. >> asphalt eruption. the story behind this 30-foot geyser on a california street. a new yorker hit by hurricane sandy hits power ball for a million bucks. welcome back to "early start." i'm christine romans. >> i'm zoraida sambolin.

30 minutes past the hour. jitters for small business owners. president obama is calling for $1.6 trillion in tax spikes. john boehner is telling him to get serious. >> with 32 days left, the two parties are trading insults with 90% of americans facing higher taxes next year. small business owners want answers. poppy harlow is talking to them. they are very nervous about this. >> very nervous and frustrated. they have no idea what is ahead. that uncertainty is the hard part. we went to new jersey to talk to owners of very different businesses that are equally frustrated that washington can't get it together. >> any company, any business did the method of accounting like the government, we would be in jail. >> you sound like you have had

it. >> i have. here is the reservations. staffed 24 hours a day. >> reporter: he started the business back in 1984. today, he's got a staff of 75. 53 cars and one big question. >> i just want congress to tell me to come up with what the boundaries are so i know -- i know how to run my business, i know how to plan. >> reporter: he's laid off four employees in the last six months. the business made it through the stock market crash of '87, and 9/11 with no decline in revenue until the financial crisis in 2008, now this. could more layoffs be around the corner? >> absolutely. depends on what happens. >> reporter: down the street, charles is buying gold. >> people come in and bring scrap. >> reporter: he's a one man band and business is so-so. the economy is supposed to be getting better. >> it's what they tell us.

>> reporter: you don't buy it? >> i don't see it. >> reporter: he wants to see congress act to avoid the fiscal cliff. what would tax increases mean for you in this business? >> it might be good. more people are going to have to sell their gold. >> reporter: it would hurt customers buying power. he certainly doesn't want to pay more in taxes, but he's open to them. it's not the solution. >> the right deal means you have to spend less. >> reporter: two small businesses in the same small town staring at the same fiscal cliff, both with a message for washington. >> i would love for them to come here and just spend a day, spend a week, just to know what small business goes through. >> do your job. make a decision. >> clear message for washington. with the exception of tax breaks, they are taxed like us, like individuals. if we fall off the fiscal cliff,

their taxes are going to go up. what could hurt more is less money in customers pockets. that could be worse than tax increases. a big question is how much our tax is going to go up for small businesses if we fall after the cliff. they have done analysis, if you are in the bottom making $20,000 a year as an individual or small business, your taxes go up 600 bucks. if you are in the top, $108,000 or more, taxes go up $13,000 a year. it depends on where you fall. >> if in washington they decide to raise taxes on the top earners, that would be the small businesses. >> absolutely. if it's 108,000 or more, it's a lot of those small businesses. >> i talked to a woman who made your exact point. my customer base is a problem now. we are headed into the holiday season and nobody wants to spend money because of the uncertainty. >> he's had four layoffs because

he cannot budget. >> you look at the gdp report, companies spending money on equipment was down, down big. it's because you are not going to do anything. you don't know what washington is doing. >> the business owner, he said poppy, i might sell my business, put it in a portfolio. if that's what i'm making now, what is the point. what is the point of all this work. >> we appreciate hearing those voices. >> it's a shameful situation. syria pulled the plug on the outside world. reports that nearly all access to the internet has been shut off. lan lines have been shut off. rebel forces abuse the internet to their advantage. it comes as forces battle. if rebels can capture the airport, it would be a severe blow to the assad regem.

all that as they march toward 40,000. >> accused of passing thousands of classified government documents to wikileaks. bradley manning is back in court today. yesterday, he testified he's been treated harshly while in military custody. the defense requested the hearing to ask that the charges against him be dismissed. mitt romney and president obama promising to stay in touch. the formal rivals spent an hour discussing ideas to. a source tells cnn there's no discussion for a roll for romney in the obama administration. just a civil lunch. a truck goes into a bar -- no, this is not the set up to a joke, folks. take a look at the result. police say the driver of a snap-on tools truck lost control, knocked off a fire hydrant and crashed through a place called pete's cocktails.

it left an 11-foot wide hole in the wall. you can see water rocketing into the air. the good news is everyone was okay. after sandy, a stroke of luck for a man affected by the superstorm. joel was heading to work when he stopped to check his power ball ticket. he was one of 58 people who came up one number short of the big jackpot. >> put it in the machine. he said you're a winner. not only that, you won $1 million. >> several other lotto winners hit the $33 million megamillions. >> that's great. 38 minutes past the hour. the cars of the future and we are getting a sneak peak for you. coming up, we go live to los angeles to see the hottest wheels in the entire world. who have used androgel 1%, there's big news. presenting androgel 1.62%.

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the cars of the future going on display at the los angeles auto show. the show under way today runs through december 9th in familiar models like the toyota rav4 are getting a reboot. several manufacturers showing off new electric and hybrid vehicles. will there be a market for many new vehicles? dave says for now, things are looking good. >> if you have the right kind of products, people are going to buy them. that's the bottom line for us. we have had chevrolet sales up 37%. our sales are up globally. we sell a chevrolet every six sects. we have the right business model to survive these kinds of economic ups and downs that frankly, we don't have control over. casey is live for us at the car show. cool stuff there. >> absolutely, christine.

the l.a. auto show is about to get under way in eight hours from now. the public will come in and start looking at these cars. as you heard from the general motors executive, it's been a gang buster year for the auto industry. pent-up demand after the recession. low interest rates. they are forecasting there's going to be a slowdown in the rate of growth next year. even if there is a fiscal cliff hit to the economy, they are in better shape to survive it. the bread and butter were the suvs, big cars. a lot of car enthusiasts and people like me love to look at expensive sports cars like the chevrolet camaros. they have switched to, what is selling well is very small cars like this 2013 chevrolet spark. you can see the price tag here, very recession, post recession

conscious. $15,000 for this car. now, among the new products offered is an all-electric version of the spark. it will only be sold in california and oregon, initially. some of the innovations here, you will be able to charge this car in 20 minutes, up to 80% of its charge. gm not saying how far it will go on the charge, somewhere under 100 miles. this is definitely a commuter car. this is the mix the auto makers are going to. smaller cars is what's driving the industry right now. >> does it appear to be business as usual in terms of car buyers or how does the situation in washington affect this year's auto show? a lot of people don't know what their tax rates are going to be next year. >> they are saying they can't do anything about what is going on in washington. if there's a dip back, car

buying may be put off by car buyers by six months. they are going full speed ahead with new introductions. for example, this spark we were talking about, you are going to be able to pair your siri iphone with this. we spoke to an executive with sprint putting together a package starting next year that will allow you to be a wi-fi hot spot in your car. your passengers will be able to be on the internet in your car. you can set it so if you didn't want your teenager to text while driving, they wouldn't be able to do that. these technologies are going full speed ahead. >> wow. i thought power windows were cool. everything changed since i got my driver's license. casey in l.a. have a good time. >> lucky guy there. thanks. stranded and alone. a young animal struggles against

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welcome back. 49 minutes past the hour. fiscal cliff talks getting nowhere fast. president obama pitching a spending plan that incluss $1.6 trillion in tax hikes. he'll visit a pennsylvania manufacturing plant today to

sell it. john boehner says the president needs to get serious about spending cuts. a new york city hotel maid accused him of sexual assault. the head of the former international monetary fund faces aggravated -- a deer that found himself stranded on a lake in wisconsin for more than 24 hours is, oh, happily back in the wild again, i imagine. volunteer firefighters used a sled to rescue him. it took 45 minutes to lead the seven-point buck off the frozen lake and finally to safety. a rough week for weather continues in the west. rob has that for us this friday morning. good morning, rob. >> another punch of rain and wind across california. here is the fire hose that's

opened up, tapping into the tropics. this is a warm rain. the snow levels aren't high. flooding issues abound. also, a lot of wind energy with this. 80-mile-an-hour wind gusts near lake tahoe. 72-mile-per-hour wind costs in carson city. winds have been damaging. rainfall excessive. they are looking for a ton more. pin crest california, over six inches. here is the radar filling in across san francisco. a little bit of rain there. notice it turns to snow at the highest elevation. this is the second of three waves. one came through yesterday. the third on sunday. another one behind that on tuesday. tremendous amount of rain with this. could see over ten inches in some spots. one to three inches of snow. it's not a huge help. east of mississippi is looking good.

chilly in up state new york. snow across northern new england. by the way, last day of hurricane season. thank goodness. >> yeah! that's a cause for celebration. >> absolutely. >> thank you. appreciate that. 51 minutes past the hour. a packed hour including the wall before the fiscal cliff. a top republican laughing at the white house plan saying it's big on taxes, sketchy on cuts. more on the deadlock that could cost all of us as those holiday bills come in. we are talking to tim huelskamp and sheila lee. one winner of the record power ball jackpot has been identified. we are live in dearborn, missouri. can you spare a couple hundred million dollars? >> plus, the man behind the force is going to go one-on-one

"gangnam style." is she going to dance? i can't wait to see. >> i cannot wait to hear this. first, a 26 pound tub of politics. the vice president shops in bulk at costco and hilarity ensues. i'm going to dream about that tiramisu. what a night, huh? but, um, can the test drive be over now? head back to the dealership? [ male announcer ] it's practically yours. but we still need your signature. volkswagen sign then drive is back. and it's never been easier to get a passat. that's the power of german engineering. get $0 down, $0 due at signing, $0 deposit, and $0 first month's payment on any new volkswagen. visit vwdealer.com today. in that time there've been some good days. and some difficult ones. but, through it all, we've persevered, supporting some of the biggest ideas in modern history.

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welcome back. 56 minutes past the hour here. we are looking at the top trends on the web this morning. costco just opened their first store in washington d.c. vice president biden went there. >> we have the report on what

ended up in the vps part, not to mention what ended up in his mouth. >> oh. >> reporter: say it ain't so, joe. the vice president invades costco. >> we are going to cut through the liquor section. ♪ jingle bells snons. >> reporter: forget driving a sleigh. joe biden didn't drive his own cart. employees were thrilled to do the honors. consumer confidence was high as he flashed his card. instead of bells, he had the press pack in tow. >> if you keep walking back wards, please. go to the bakery section, please. go that way. >> reporter: imagine shopping for a watch with the press watching as vice president biden called his daughter. >> getting some guidance. >> reporter: who looked at a $1200 watch. we don't know if he bought a watch but we know what he ate. every free sample in sight in

the bakery section. he bought an apple pie. it's a dilemma, do you want to shake hands or eat. he shook and ate with a package of crackers in the cart. costco cost the vice president a lot of calories. vice president biden came to promote extending middle class tax cuts, probably didn't hurt that the co-founder of costco is a big obama contributor. before he left, the vp used the phone of his cart driver, ivy stewart to call her grandmother and leave a message. ivy was so moved, she wiped away tears. >> thanks for shopping with me. i know you won't tell anybody what i bought for christmas gifts. >> reporter: here is a hint. "huffington post" held a caption contest for the check-out photo,

our favorite, stop by for some fire logs. went home with a flat screen tv, 32 inches. jeanne moss, cnn. ♪ >> did he buy the watch? >> that tweet was so funny. the caption was so funny. my brother-in-law went to sams club to buy flowers and came back with a palette of computers. >> that's what happens. >> that's what happens. >> "early start" continues right now. soundly rejected, the gop snubs the white house's opening offer in fiscal cliff talks. >> battered and bruised. an exclusive look inside the statue of liberty. rich and now famous. we know the identity of one of those lucky power ball jackpot winners. good morning, welcome to early

start. i'm christine romans. >> i'm zoraida sambolin. it is now 6:00 a.m. in the east. it's getting personal. we begin the hour with insults, finger pointing, it's in the fiscal cliff debacle. spending gets slashed. congress breaks for the holidays in 14 days. slash that number in where thi right now. the president pitching a plan that calls for $1.6 trillion in tax hikes, and $50 billion in infrastructure spending. he will travel to a manufacturing plant in pennsylvania today to sell that plan. republicans sure aren't buying it. listen to house speaker john boehner. >> despite the claims that the president supports a balanced approach, the democrats have yet to get serious about real spending cuts. >> you know democrats are getting right back. harry reid getting personal. >> i don't understand his brain,

so you should ask him. >> athena jones is live from washington. where do we go from here? sainzs like the same old-same old. >> well, it certainly does. all that happy talk right after the election is gone right now. the big sticking point is something you've already mentioned, this whole idea of taxes. republicans and democrats can't agree on how to go about raising tax revenue. should they end the bush tax cuts for the wealthy? that's what democrats want to do. should they close loopholes and cap deductions? should they raise the capital gains tax, and taxes on dividends, as well? or some combination of all of the above? right now they don't even seem to agree on the amount of money to be raised in revenue. let's listen to what senate majority leader harry reid had to say to explain the democrats' position on this. >> protect middle-class families from the fiscal cliff that they're facing by freezing the tax rates for the first $250,000 all americans' income and letting the rates go up to the

same level they were during the clinton administration. republicans know where we stand. we've said it. we've said it. we've said it so many times, the president's said the same thing. >> and so republicans do know where democrats stand. this is certainly this idea of raising taxes on the wealthy is something that the president ran on in the last campaign. but republicans feel like there's been way too much focus on this whole tax side of things, and not nearly enough focus on spending cuts. which are also needed. let's listen to what house speaker john boehner had to say about that. >> right now, all eyes are on the white house. the country doesn't need a victory lap. it needs leadership. it's time for the president, congressional democrats, to tell the american people what spending cuts they're really willing to make. >> and so you heard that there. the republicans feel like the offer on the table, which is $400 billion in so far

unspecified cuts, two entitlement programs like medicare, that's from the white house. the republicans feel like that's not enough. but certainly democrats say, look, we've put a number out there, we're waiting for you to give us a number on what you want to see happen on entitlement programs. >> but the lack of specifics a bit of a problem there. we understand the president is taking his pitch to pennsylvania did. what is he going to say to the american people? how does he plan to sell this? some are calling aggressive approach. >> it's interesting, because since he campaigned on this, zoraida, you will probably hear some of the same language we've been hearing for a month and certainly heard earlier this week. he's going to a toymaker. he says this is the -- the white house said this is the kind of company that relies heavily on middle class consumers, the kinds of people who are going to see their wallets hit if there are tax hikes at the beginning of next year if there's no agreement. this follows on what he did earlier this week where he had an event where he highlighted this idea of my2k which is about the amount of money $2200 that the average middle class family

could see themselves lose in their paycheck if there's a big middle-class -- if the middle-class taxes go up. and so this is all part of a campaign to sort of win people over to his side. and republicans aren't too happy about what they call this campaign-style event. >> there's so much to do and so little time, right? the president said he'd like a deal before christmas. we'll see if that's even possible. athena jones, live in washington. we'll talk about the prospects for a deal on the fiscal cliff in the next half hour when we're joined by democratic congresswoman sheila jackson lee of texas and republican congressman tim huelskanm. the united nations general assembly voted overwhelmingly yesterday to upgrade the status of the palestinian authority to non-member state. palestinians celebrated this endorsement of the move towards statehood. but the united states and israel strongly opposed the resolution.

cnn foreign affairs reporter elise labott is in washington to explain what it all means. why do the u.s. and israel think this is not a good move for -- for palestinians? >> well, christine, i mean, it signals the frustration on the part of the world, and the lack of the peace process. and what the u.s. is saying is that it really doesn't give the palestinians what they want, which is an actual state. it doesn't give them borders. it doesn't give them any sovereignty. and so all of their u.s. argues is going to do is antagonize israel and lead to more frustration if israel withdraws -- withholds revenue, with it's threatening to do, increases restriction on palestinian officials, as a -- as a consequence of this move, and there's also talk in the u.s. congress about -- about cutting aid, if the palestinians take further moves such as going after the israelis and the international criminal court, or

not getting back to the peace table. let's listen to what senator chuck schumer said yesterday after the vote about what congress could do. >> we know that aid is important to them. we want to see prosperity in the territory under the palestinian authority's jurisdiction. but when they do this, they're just throwing away hopes for peace in any way. so we believe it's appropriate and right, and we hope it won't come to that. >> but, christine, you know, what it also does, on the pro side is it gives us, the palestinians a little bit of international legitimacy for their goal for an independent state that they've been looking for for so many years under israeli occupation. let's listen to what president abbas said after the vote about what this does for the palestinians. >> translator: israeli aggression against our people in

the gaza strip has returned once again. the urgent and pressing need to end the israeli occupation, and for our people to gain their freedom and independence. >> so i think all eyes are on president abbas. now what is he going to do? if he, as he says, he says he's going to go right back to the peace talks. that's in the negotiations. he feels that this gives him a little bit of leverage. if he goes the opposite direction, if he takes further moves against israel in the international criminal court, he has these tools now, that could lead to real deterioration of relations with israel, with the united states, and what the u.s. fears is further violence in the region. christine? >> all right, elise labott. thank you so much. it is seven minutes past the hour. surveillance video may answer the $294 million question. who bought the winning powerball ticket in arizona? take a look, people, at this

maryland gas station saying this man walked into check his ticket and just started freaking out. they say he told them he bought the ticket in arizona. 52-year-old mark hill is the lucky guy in missouri, however. he bought his ticket at this trex mart. jenna joins us from dearborn, missouri. jenna, this is the kind of town where everyone knows each other. i bet you are all buzzing about this this morning. >> everybody is buzzing in this town. i mean, it's a small town, so news definitely travels fast. we talked to neighbors, they say that the winners this morning are mark and cindy hill. they've lived in this area for several years. they bought the ticket yesterday with about four other people. now, this area, dearborn missouri is about an hour from kansas city. mark hill works nights in saint joe and actually cindy hill, she

had a job interview yesterday, which she ditched out on on the last minute, understandably, because she won the lottery. they just adopted a daughter. they have several kids here in the area and many people that we spoke with, they say that they deserve every single penny of this jackpot here. so after taxes, they're expected to get about $300 million from everybody is anticipating how are they going to spend all of this money. zoraida, back to you. >> all right. so we want to put this in perspective for people there. so i hear that you have a very creative way of doing that for us. the money, that is. >> it is. it's very interesting. so the annual budget for this town here, dearborn, missouri, is about $800,000 to $900,000. so that means that they could essentially pay the town's bills for the next century. that's a lot of money. >> and jenna, this is another guy that hails from chicago, it is really nice to see you this

morning. thanks for that story. we appreciate it. all right. egypt's constitutional assembly has passed a new rush draft constitution. the 5-member mostly muslim brotherhood assembly passed 234 articles. the draft will be presented to president moment morsi today. needs to be approved by the egyptian people. critics say that the language in some of the articles is open to interpretation and may allow conservative islamists to oppose a rigid version of sharia law. human rights groups say it's full of holes and ambiguities. the proposed constitution hasn't eased public anger, either, against morsi's expansion of his powers. the supreme court may decide as early today whether to tackle same-sex marriage. they're going to consider requests that challenge the defense of marriage act as a violation of the constitution's equal protections provision. doma only recognizes marriage as between a man and a woman. it's also considering a challenge to proposition 8, that's california's ban on same-sex marriage.

which voters narrowly approved in 2008. she's bruised but not broken. coming up the exclusive look inside lady liberty. looking at the damage left behind by sandy we'll see what needs to be done to get the american icon back up and running. [ female announcer ] nature valley granola bars, rich dark chocolate, toasted oats. perfect combinations of nature's delicious ingredients, from nature valley. ♪ nature valley granola bars, nature at its most delicious. something this delicious could only come from nature. now from the maker of splenda sweeteners, discover nectresse. the only 100% natural, no-calorie sweetener made from the goodness of fruit. the rich, sweet taste of sugar. nothing artificial. ♪ it's all that sweet ever needs to be. new nectresse. sweetness naturally.

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get selsun blue for itchy dry scalp. strong itch-fighters target scalp itch while 5 moisturizers leave hair healthy. selsun blue. got a clue? get the blue. welcome back. it is 14 minutes past the hour. so she took the worst of what sandy had to offer and lady liberty is still standing. but the assume storm did set back her reintroduction to the huddled masses. i went to liberty island to look at her stunning touchup job and yesterday i went back. one month after superstorm

sandy's wrath, lady liberty stands tall in new york harbor. but the beacon of light is littered with debris, bricks ripped up from the ground. a boat washed up onshore at nearby ellis island, all the result of sandy. so she survived. >> yep. standing there proud and defiant. >> while the statue itself is intact the grounds suffered enough damage to force the closure of the park to the public indefinitely. the national park service is now in the midst of a massive cleanup effort, in hopes of reopening both parks sometime early next year. how high did the water go here? i mean this is totally -- >> probably here. >> before sandy hit i visited the statue of liberty for my first time. i returned yesterday, very different. as we arrived on liberty island the emergency crews filing in and not tourists, one month after sandy devastated the area, there is still plenty of work to do. now that's the story you would say, right? >> yeah, pretty much.

>> one of the main docks to liberty island is now floating. >> this island is determined by how we can get people off. so if we lose this dock we lose one boatload, which means i have to reduce the number of people that come to visit. >> the effects of sandy aren't just structural. concession workers and ferry employees were laid off this week, due to the extended closure much both islands. so did everybody lose their jobs? >> no. no. the concessioneers, i understand, have laid off their folks for the time being. but our folks, we just sent to other parks. >> david louisinger is a superintendent of the statue of liberty. he can't help but take his work home with him. he actually lives here. how long did you live here? >> 3 1/2 years. >> just you and your wife? >> yes. >> and did you lose everything in your home? >> we lost most everything. >> the offices next door, a stark reminder of sandy's toll.

when you look around, you compare this to your home and what you saw, how does it compare? >> it's not even close. because we are on the far corner there, we sustained so much more damage. to me, to have a job that you love, to have a job that you can come to and be so excited about every day, an honor i couldn't begin to describe. >> but the statue of liberty remains an icon of home and promise of better days ahead. >> as sad as it is to see it in the state it's in right now, i know it's going to be better. >> it is going to be better. and here's the good news. when they're rebuilding now they're going to rebuild sustainably, and he said that they are totally committed to that. so may take a little bit of time to figure it out. and also the amount of volunteers that went back there in order to make sure that the torch was lit. so let's take a look at lady liberty. can we take a live look. looks really dark now, right? the torch is the only thing

that's lit. the problem that happens here was that all of their infrastructure is underground. and so when all that water hit, they lost all their infrastructure. so those folks are over there working with no lights, no heat, no water. but they are totally committed to the effort. and you know, when i went last time i went to take a look inside of that $30 million renovation that makes it wheelchair accessible. the good news also is that that is perfectly fine. >> oh, good. >> and lady liberty. they checked her out. they thought she had a tear. she doesn't. she actually was sand blasted. so her original beautiful green color in her belly when you're out there take a look. it's different. so there is some good news there. he said they definitely will be open within a year. actually maybe even less. he said it's not as bad -- that $30 million renovation was much more complicated than this. so there's some good news. >> that was really interesting. 18 minutes after the hour. we're going to get you up to date on the morning's top stories now. fiscal cliff talks going nowhere.

the president hits the road today selling a plan that includes $1.6 trillion in tax hikes and $50 billion in stimulus spending. you can imagine what republicans thought about that. they are balking at the very least. house speaker john boehner telling reporters the president needs to, quote, get serious on spending cuts. out of nowhere the earth collapsed. a giant sinkhole has developed near dover, ohio, south of cleveland. local residents cannot believe their eyes by how big this thing is. it happened wednesday afternoon. taking part of a two-lane highway down with it. fortunately no one's been injured. wow. exciting discovery on the planet mercury. ice. na nasa's messenger probe discovering frozen water. it's mostly found in deep craters that are always in the shadows. scientists believe the water almost certainly came from impacting comets or asteroids. 30 years ago today, back in 1982, michael jackson released

"thriller" an album that changed the music business and cemented jackson's status as a superstar. jackson made a series of music videos, listen to it for a second. ♪ did you see that video? 30 years ago. i'm feeling really old. >> then he made all these other videos to go along with the other hit singles like "billy jean," "beat it," the rest is history. it won eight grammys. it's the highest selling album ever. 5 million to 110 million copies sold worldwide. 30 years ago today. >> you know, didn't you want to move like this. >> the first time i ever saw that video i was in roller skates. >> you're dating yourself. call it the icing on the cupcake. coming up, bonuses for the big bosses at hostess. now that the company's going out of business.

yep, look at this. it takes like 20 pictures at a time. i never miss anything. isn't that awesome? uh that's really cool. you should upload these. i know, right? that is really amazing. the pictures are so clear. kevin's a handsome devil that phone does everything! search dog tricks. okay, see if we can teach him something cool.

look at how lazy kevin is. kevin, get it together dude cmon, kevin take 20 pictures with burst shot on the galaxy s3.

listen to this, folks, our senior producer got in our ear and said ladies we are bumping back with some stunning views of new york city. so we are delivering them to you this morning, folks. isn't that gorgeous? look at that. fine city. i wonder what our weather's going to be like today. >> looks clear and crisp. >> good way to start your friday. welcome back. christine romans is here and as usual she is minding all of our business. >> friday edition. u.s. stock futures up slightly

this morning, but worries about the fiscal cliff persist. of course. markets finished up a bit yesterday but came off the day's highs after some comments from the house speaker about these ongoing fiscal cliff negotiations. so that's going to be the way of the world for the next month or so. until this gets resolved. u.s. bankruptcy judge approved those bonuses yesterday for 19 hostess executives of $1.75 million in bonuses for hostess bosses, as long as they meet certain objections in shutting down that company. the maker of beloved american staples like twinkies, wonder bread, ding dongs, ho-hoes, closed its doors after the bakers union went on strike over pay cuts and benefits. while the two winners of wednesday's powerball jackpot uncle sam has reason to celebrate, too, for the prize, whether take it as a lump sum or an annuity will be taxed at the highest federal income tax rate of 35%. if taken as a lump sum the winners will get $192.5 million

each before taxes. the arizona winners will take ohm $114 million and the missouri winner will get about $117.5 million. the winners overall federal tax liability could likely be lower if they deduct their state taxes. i'll tell you someone who's going to make money, their tax attorney. for whoever wins. the one thing you need to know about your money today is that the much-anticipated itunes 11 is available for download today on both apple and mac computers. software updates includes expanded integration of the ipad, play list feature. it is here. it's available today. >> i need somebody to walk me through that i-cloud thing. >> you've got kids. >> that's true. >> everyone needs a 12-year-old. america's oldest living president is waking up in the hospital this morning. what doctors are saying about president george h.w. bush is coming up. and if you are leaving the house right now you can watch us any time on your des being top or mobile phone. like a lot of things,

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fiscal split. the two sides seem farther apart than ever after round one of talks. asphalt ee runs. look at this. the story behind this 30 foot geyser on a california straight. and a virtual fortune. a new yorker hit by hurricane sandy hits powerball for $1 million. >> everybody's got to love that story. >> that's a great friday morning story. i'm cries teen romans in for john berman this morning. >> and i'm zoraida sambolin. president obama is on the road today. he is hoping public pressure will force the gop's hand in fiscal cliff talks. when that plan was presented yesterday to leaders in congress, it only underlined the divide between the two parties. senate majority leader mitch mcconnell literally lol when tim geithner presented it. republicans calling it a one-sided plan big on taxes,

short, and vague, on cuts. >> time for president, congressional democrats to tell the american people what spending cuts they're really willing to make. >> we're still waiting for a serious offer from the republicans. really now is the time for the republicans to move past this happy talk about revenues, ill defined, of course, and put specifics on the table. >> still to hear from lawmakers on the hill. we're going to speak to kansas republican representative but right now i'm joined by the senior whip of the house democratic caucus, texas congresswoman sheila jackson lee. very nice to see you. thank you for being with us this morning, congresswoman. >> good morning. so boehner has said he would accept a tax increase of $800. the white house plan is asking for $1.6 trillion, which is double that. why did president obama put forth such an aggressive plan,

as many are calling it? this is really a serious offer. >> first of all i'd like our republican friends to stop a war on the working people of america. that is what the ultimate nonaction will impact. i think the president has made it very clear that he is responding to the affirmation of his position on november 6th, 2012. but he is not in any way hesitant to negotiate. $2.4 trillion were the bush tax cuts that resulted in this enormous deficit, because in the 199os, we had a $5.6 trillion surplus. what the president is trying to do is to give relief to working people, and as well provide revenue to continue to support the needs of this nation. such as mayor bloomberg, who's just come to washington and asked for an enormous amount of money, rightly so, to help those who've been victims of hurricane

sandy. so the president is not in any way suggesting that he's not willing to negotiate. he asked the questions, when are the republicans going to be considerate of those who get up every day and work? or those who need medicare or social security and medicaid? that is what the bottom line is for the president and for democrats, to protect benefits in a reasonable manner, and to ensure that we have the revenue to bring down the deficit and to continue to operate in the needs of the american people. >> i'd like to talk about those entitlement programs because i know that this is very near and dear to your heart. the lion's share of the $400 billion in cuts are expected to come from medicare and possibly social security. you are a member of the progressive caucus. the head of the caucus, keith ellison, says all 77 members will stand against cuts to entitlements if those cuts are included in a compromised bill. will you vote against it? >> i never say never. but, the caucus is right and i support the progressive caucus

and i don't at this time conclude that we will get to that point. because social security is solvent in 2037. medicare is solvent until 2024. here's what i'd like to see. i would like to resolve these tax issues, and move deliberatively into 2013 and look constructively at how you address these issues. let's look at the case. we have taken $756 billion from medicare, eliminating waste, fraud and abuse. i'm willing to look at that again for waste, fraud and abuse. but we will not stand for cutting of benefits. that is just not acceptable. these are benefits to working people. >> but you are open to compromising on that issue? >> i'm open to looking at more cuts and waste, fraud and abuse and other aspects that do not directly impact the individual recipient of a medicare benefit because those folks and individuals that are working and medicaid in its largest amount goes to nursing home seniors who have worked all of their lives, and social security is not the crisis or the issue in this

discussion. if my republican friends would think about the working people of america, stop the war on working people of america, and not adhere to the fact that in a recession you must constantly focus on the deficit. most economists say focus on growth. but i am looking forward to reasonable men and women coming together as patriots, and ensuring that we will address this question for the american people. we do not need to look at entitlements before 2013, and i would hesitate to rush into any assessment of entitlements before we look carefully at how we bring back the bush tax cuts. when i say bring back, bring them down and allow everyone makes $250,000 a year to be able to get the tax cut, and that means wealthy people. there's nothing wrong with that. >> i appreciate your passion and your time this morning. we've got to get to the other side. congresswoman sheila jackson lee. thank you so much for joining us this morning. we really appreciate it. >> thank you for having me. >> so we'd like to bring in kansas republican congressman tim huelskamp who sits on the house budget committee. so i would like to start with

your thoughts on the white house's offer, if i dare here. >> i didn't laugh out loud, but we've had four straight years of trillion dollar deficits, and this president can't find anywhere to actually reduce spending. we've got a spending problem, not a revenue problem in washington. but i agree with the president from two years ago when he said you can't raise taxes in the middle of a recession. i think the economy is lower than it was last year. slower than it was the year before, and we have this idea and notion that somehow raising taxes is going to create jobs. we have about 23 million americans looking for work. raising taxes doesn't create jobs. if we want more revenue in washington we need to grow the economy. we need to provide a moratorium for obama care. we need to talk about ways we can grow the economy and get washington out of the way so people can go back to work. >> congressman, you know, americans really want to compromise here and they want finally a plan and to resolve this fiscal cliff. will republicans now counter with their own version of a plan, and -- and if you could share some details of what that

potentially would look like? >> i think one of the problems with washington in general is these things are taking place behind closed doors. that didn't work out a year and a half ago when they put together a bad deal. both sides, the president, majority leader, the speaker, that created this crisis, but the point was that they wanted to borrow another $2.3 trillion. they promised they cut spending and here we are at the end of the year, we haven't cut any spending since august and now we want to borrow more money and raise taxes. again, two years ago, president obama signed and extended what i call the bush obama tax cuts. i think we need to do that, for some certainty to the economy and talk about looking at some real spending cuts, as well. >> some are criticizing this and calling it a very aggressive plan that the president has pushed forth. in public comments like the one we heard from boehner, reid, both sides taking really hard stances. but some insiders saying that a deal is within reach and much of it is for show now.

new jersey democratic congressman rob andrews told politico this. there's the public choreography, then there is the real choreography. it may be something you alluded to. to reach a deal it has to look like there was a lot of fighting before the deal was reached. what's your response to that? do you think that there is a lot of grandstanding going on here? and we're actually going to make the deadline that the president suggested, which is before christmas? >> there's always a lot of grandstanding in washington on both sides. this is my first term in congress. i think mosts americans are disappointed. the president prepared a budget and sent it to congress in the last two years and not a single member of the house or the senate ever voted for his budget because it wasn't serious. here we are, 30-some days before the end of the year, the biggest tax increase in american history, and i think the president seriously wants to raise taxes on everybody. or else he'd present a serious plan that actually involves reductions in spending. which has never happened in washington for a long, long time. >> the gop is taking a lot of criticism here. there's a cnn/orc poll that

shows public opinion that is decidedly against republicans in congress. 45% said they would be more responsible for negotiations failing, while only 34% said that they would blame president obama. do you feel like there's more pressure on republicans to give up some ground here in order to reach some sort of a consensus? >> i know a lot of folks in washington rory about polls. i'm worried about what happens to our state of our nation. we've got $16.3 trillion debt, and the president has provided no leadership, or actually how do you actually reduce spending? what's the balanced approach if you can't identify a single cut? meanwhile the president wants to spend $4 million for vacation at the end of the year in the midst of what is a huge crisis. >> so congressman my last question to you is do you think that we will actually go off the fiscal cliff? do you think it will be a compromise that will be reached before christmas? >> that is a great question. i don't know the answer to that. but it's not about washington. it's not about what the politicians are thinking.

it's about how do we create more jobs in america and get our economy growing again? and i'm afraid $400 billion in tax increases go in effect on january 1st, i guarantee you we're going to have hundreds of thousands of americans lose their jobs and that's unacceptable. >> congressman tim huelskamp of kansas, member of the house budget committee. thanks for spending some time with us this morning. appreciate it. >> thank you. >> he's right, it is about the american people. but it is about washington, because this is -- washington holds the american people in their hands right now. >> hostage. >> all right. they say age is just a number. but not for scientists who are now watching the dispute over the grand canyon. coming up, just how old is this national treasure? why do toys for tots and hasbro trust duracell to power their donated toys? duralock power preserve. it locks in power for up to 10 years in storage. guaranteed. duracell with duralock. trusted everywhere. duracell with duralock.

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john berman joins us now with a look at what's ahead on "starting point." >> i'm still going to tell you what's ahead on "starting point." a big laugh in your face rejection from republicans over the obama administration's opening negotiation on the fiscal cliff. we're going to take to steny hoyer about what this means for talks from here. and he's defending susan rice and his fellow republicans hammer away at her. former presidential candidate ambassador jon huntsman is going to join us to explain all this. and the best part about this, abby huntsman, his daughter, is going to be on the panel. kind of like their first joint appearance. we're saying ever. we have to fact check that. but we're making history this morning. plus russell simmons bringing art to kids in urban areas. why he's so passion about this cause. and this is a picture everyone on the planet is talking about. the cop who warmed the hears of

everyone who's seen this photo, he's going to join us. that and much more coming up on "starting point." it's like 15 minutes away. it's friday. what could be better? >> that is a sharpie, not a pen. thought i'd correct you. >> 44 minutes past the hour. people on the west coast bracing for the threat of flooding and mudslides. meteorologist rob marciano is keeping an eye on it and sharing the bad news. >> second pulse of several coming through right now. this is the highlight of the moisture pointing at san francisco. but it's from seattle to san diego from time to time. 80-mile-per-hour wind gusts yesterday. western parts of lake tahoe. almost seven inches of rainfall in california. over the next five days we could see a foot more rain. there's your rainfall in san francisco. a little bit of white. i mean this is low elevation

event. interesting. psychedelic friday. not sure how that happens. but they -- >> we got you on candid camera. >> how about that? >> you're really trying to figure out how that happens, right? >> yeah, i am. by the way, last day of hurricane season. this has been the third busiest hurricane season, although we've tied several years of this on record. 19 storms, and don't have to tell you about the two big ones that hit the u.s. >> we're happy to put that all behind us. 45 minutes past the hour. former president george h.w. bush, who is 88 years old, is in stable condition this morning. he's in a houston hospital. he was admitted a week ago and is being treated for bronchitis, we're told. his office says the former president is expected to be released in the next few days. mr. bush is the oldest living former president. >> there's a new dispute in scientific circles regarding the age of the grand canyon. visitors to the grand canyon are told that scientists believe the canyon is about 6 million years old but geologists at the university of colorado now published a paper in the journal

"science" which claims the grand canyon dates back to the time when dinosaurs walked the earth, 70 million years ago. >> it's a geyser! police in san diego say the driver of a snap-on tools truck lost control, knocked off a fire high drand and crashed through the wall of a bar. water rocketing into the air. everybody was okay. a stroke of luck for one man who was impacted by the superstorm. he was heading to work when he stopped to check his powerball ticket. the kennedy airport customs broker was one of 58 people who came up one number short of the big jackpot. >> put it in the machine, he said you're a winner. not only that you won a million dollars. >> he won a million dollars. several other lotto winners, including one new yorker who hit the $33 million mega millions, pledged to give to the recovery effort to help their hometown. that's wonderful. from gang style to gang busters. coming up, our alina cho goes

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♪ >> get on your horse, this week korean pop music star shattered the world record for most youtube views in history with his music video gangnam style. it is approaching 853 million views. >> 853 million views, our alina cho sat down with him for a revealing interview which she joins us now. what is it about this video that

just has taken over the world? >> have you tried the dance? it's the horse dance. what's fascinating about that is the horse dance that was made famous by gangnam style was actually quite popular in korea back in the 1980s. then psy and his choreographer thought it might be worth revisiting. they put that dance to music, and the rest, as they say, is youtube history. i guess we want to start at the beginning. gangnam. >> yes. >> the beverly hills of seoul. >> yes. that's my point of view. and i describe it as like it's a daytime thing going insane at the night time. so i come here, all the ladies to the district to be calm in the daytime, and going insane at night time. especially for me. >> you obviously, though, have a

knock for performing, and have a knock for dance, but do you think that part of the reason why this is because so successful, and went so viral, is because this dance is something that almost anyone can do with a little bit of practice? >> it's not that easy, though. >> some of the moves are really not easy. i tried them. >> but, and i do the dance, it looks easy. >> it does look easy. >> and i like the park because when people see it it looks like oh, i cannot do that. and they're not going to do it right. >> right? >> but when people see it, i can do it. and they are trying. and if people are trying, that means viral. >> they've tried nearly a billion times. >> that's what i'm saying. so, you know, i just saw like 20,000 people flash mob in italy.

the youtube, and they were doing every move, and they were saying every korean word. >> how crazy is that? >> so, you know, when i performing is kind of i feel kind of sorry to the audience, because they don't have any idea what i'm talking about, right? >> i do. >> but when i see their face, they are so happy, but they don't -- they don't have any idea what i'm talking about. but they are so happy. and they're waiting all the way until sexy ladies. >> what american doesn't understand sexy ladies. so the big question is what will psy do next.

inquiring minds want to know. it turns out he has already finished his next track, the lyrics are a mix of korean and english, probably a little more english than gangnam style, if i had to guess. release date to be announced. when i asked him, don't you feel the pressure to do better than gangnam style, i mean how do you beat a billion views on youtube? he said i don't. gangnam style was a phenomenon. it will never happen again. i'm happy i'm now on the map. boy is he ever on the map. >> he's put his country on the map, a whole style of pop music. >> i can tell you being a korean-american he is the pride and joy of korea. >> alina cho. >> thank you. >> i was expecting to see you dance, though. >> next time. >> today's best advice coming up. looking for dividend-paying stocks for your portfolio? with the fidelity stock screener, you can try strategies from independent experts and see what criteria they use. such as a 5% yield on dividend-paying stocks. then you can customize the strategies

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we're going to wrap up with best advice. >> we have dionne warwick for her best advice. listen. >> i was told to always be grand myself. i live by it and that is simply, if you c think it, you can do it. >> words to live by. >> i know. i couldn't speak. dionne warwick i couldn't think. if you can think it you can do it. >> "starting point" with john berman and brooke baldwin starts right now. good morning, i'm brooke baldwin. >> and i'm john berman. soledad is off today. our "starting point," fiscal